A construction contractor carried out scaffolding and access works under a lump sum contract valued at £127,000. The works included perimeter scaffolding, handrails, hoist hire, debris netting, laydown platforms, and bespoke scaffolding tie designs. Twenty-four applications for payment were submitted, many of which were paid late or partially. Disputes arose regarding the valuation of handrails installed using alternative fittings, the validity of Pay Less Notices, the treatment of additional hire charges beyond the agreed forty-week period, and whether certain works were omitted or instructed. The employer later claimed insolvency, raising concerns about enforceability of any adjudication award.
The contractor’s applications referenced thirty-day payment terms, while the contract specified fourteen days. Several applications were submitted late, and the employer challenged their validity. The employer also claimed to have issued Pay Less Notices, which the contractor disputed. Handrails were installed using a method not originally tendered, and the employer sought to pay at the original rate. Additional scaffolding hire charges were disputed, particularly for works retained beyond the contract period. Verbal instructions and design changes were made on site, but not always formally documented. The employer’s claim of insolvency introduced uncertainty around enforcement.
It was advised that the contractor’s entitlement to the full contract sum remained unless formal instructions to omit works were issued. Late applications could be validated through course of conduct, as the employer had consistently paid them. Pay Less Notices were only effective if properly issued and served; absent such notices, the applications stood as due. For handrails, reliance on the relevant variation was recommended, asserting that the change in method was necessitated by site conditions and approved by the site team. Verbal approvals and revised drawings were sufficient to establish instructed variations. Additional hire charges were enforceable where agreed, and strategic concessions could be made to strengthen the overall position. It was further advised to request formal evidence of insolvency and proceed with adjudication to preserve legal standing. The contractor was instructed to consolidate all supporting documentation, including quotations, drawings, variation trackers, and payment records, and to pursue adjudication with a focus on procedural compliance, valuation accuracy, and the absence of valid Pay Less Notices. Enforcement options would be considered pending confirmation of the employer’s financial status.
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